1. Todd Hale SVP, Consumer & Shopper Insights May 2, 2014 DRIVING GROWTH IN CHALLENGING TIMES

2. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 2 PANEL MEMBERS Barry Calpino Kraft Foods, VP of Breakthrough Innovations Dave Deacon PepsiCo, Director of Performance Insights Christian Thompson Kellogg’s, Senior Director of Shopper Insights

3. GROWTH CHALLENGES

4. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 4 INFLATION SUBSIDES, BUT UNITS REMAIN SOFT Source: Total U.S. All Outlets Combined (plus Convenience), All Departments, All Brands (UPC), % Change, 52 week periods vs. year ago All Departments Dollar Trend +2+4+3+1 Unit Trend +1 -0+0 Average U Price Trend +1+3 +1 Any Promo U Trend +2-0-2+0+1 Shouldn’t an economic recovery be delivering more growth?

5. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 5 CONSUMERS SHIFTING SPEND OR BUYING LESS Source: Nielsen Scantrack, Total U.S. – All Outlets Combined (plus Convenience), 52 weeks ending 03/15/2014 (vs. year ago), UPC-coded All Outlets Combined (plus Convenience) – Unit Trend Shouldn’t an economic recovery be delivering more unit growth?

6. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 6 Units “DEATH BY A 1,000 CUTS”

7. CONSUMER & SHOPPER INSIGHTS

8. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 8 CONSUMER & SHOPPER INSIGHTS 1.How is your organization leveraging consumer & shopper understanding to drive growth today & in the future? 2.Our economic recovery is not equal for all shoppers & consumers. How attuned is your organization to this fact & how do you leverage consumer & shopper insights to align your sales, merchandising, & promotional efforts to win spending at the economic extremes? Panel Questions

9. PRICE, VALUE & INNOVATION

10. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 10 HOW LOW IS “LOW”? Source: Company websites

11. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 11 WALMART ROLLS OUT ONLINE SAVINGS TOOL Source: Walmart (https://savingscatcher.walmart.com/)

12. 12 Copyright ©2014 The Nielsen Company. Confidential and proprietary. CONSUMERS WILL PAY MORE IF THE BENEFITS OUTWEIGH THE PRICE Sources: MultiAd Kwikee, Target (k-cups) & company websites

13. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 13 PRICE, VALUE & INNOVATION 1.Are you bringing greater value to income-challenged shoppers through your promotions or through product innovation? 2.How do we bring breakthrough innovation to center-store categories & how do we manage those where consumer demand or category relevance in waning? Panel Questions

14. E-COMMERCE

15. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 15 E-COMMERCE THE BIG WINNER CAGR 2013 to 2018 Source: Nielsen TDLinx & Nielsen Analytics Winning Share Average Growth Losing Share

16. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 16 E-COMMERCE COMING TO CPG, BUT @ WHAT SPEED Source: U.S. Census Bureau; company reports & websites E-Commerce steadily gaining share Amazon $13.4 Walmart $7.5 Kroger $1.6 Amazon sales growth very impressive Global annual sales growth versus prior year (in billions) Step on the gas! Who can get there faster?AmazonFresh launches in Los Angeles

17. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 17 “THE NEW WAY TO SHOP FROM HOME” https://fresh.amazon.com/dash

18. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 18 AMAZON DEBUTS PRIME PANTRY But will Amazon Prime members be willing to pay $5.99 per box? Source: Amazon.com

19. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 19 PEAPOD EXPANDS NUMBER OF PICK UP LOCATIONS “Ahold has a company-wide target to triple its online food sales by 2016” Source: Ahold; Peapod; Crain’s Chicago Business, Chicago Tribune Peapod also has bulked up its physical presence, adding 120 pickup locations on the East Coast, where New York-based Fresh Direct LLC leads, and five in the Chicago area since August 2012. On the East Coast…customers can pick up orders at Stop & Shop and Giant grocery stores. [In the Chicago area], customers can visit locations in Palatine, Deerfield, Lincolnshire, Schaumburg and Arlington Heights in repurposed bank branches or fast-food restaurants. Crain’s Chicago Business Jan. 20, 2014

20. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 20 HARRIS TEETER DEBUTS ANNUAL SUBSCRIPTION $99.95 for the entire year, no limit to number of orders placed; curbside pick up Source: Harris Teeter

21. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 21 E-COMMERCE 1.Do you see e-commerce having a positive or negative impact in your categories? 2.How should brick & mortar retailers look to get engaged in e-commerce? a)Pure-play model? b)Click & collect? c)???? Panel Questions

23. Copyright ©2014 The Nielsen Company. Confidential and proprietary. 23 STAY CONNECTED http://www.nielsen.com Todd.Hale@nielsen.comhttp://www.linkedin.com/pub /todd-hale/a/353/613 @ToddHaleNielsen